S. Korea, U.S. seek package deal on defense cost sharing

By Lee Chi-dong
SEOUL, Oct. 24 (Yonhap) -- The United States is demanding a 14.5 percent increase
in South Korea's annual financial contribution to the presence of American troops
here, despite Seoul's push for a single-digit hike, a diplomatic source said
Friday.
Officials from the two nations will try again to narrow differences during a new
round of talks slated for Oct. 29-30 in Seoul, the source added. They will be the
fourth such talks this year.
South Korea paid 725.5 billion won (US$510 million) to Washington last year and
is expected to pay the same amount this year with an adjustment for inflation
under the Special Measures Agreement (SMA). South Korea pays the share in won
instead of dollars as the money is largely used to pay wages for Korean employees
at U.S. military bases and to construct facilities here, meaning South Korea's
burden is not affected by the fluctuation in won-dollar exchange rates.
"The U.S. has constantly asked for a 14.5-percent increase in South Korea's share
next year, compared with that of this year," the source said, asking not to be
named.
Another sticking point is whether to allow the U.S. to use the money for a
multi-trillion-won project to relocate the Second Infantry Division to a
consolidated base in Pyeongtaek, 70 km south of Seoul.
Under the 2004 Land Partnership Plan (LPP) deal, the U.S. is required to pay all
costs for the relocation of the front-line division, while South Korea is to
shoulder the cost of moving the Yongsan Garrison in central Seoul to Pyeongtaek.
The U.S. claims there should be no problem with funneling SMA funds to the base
relocation as construction of new facilities is one of the main purposes of the
money.
South Korean ministries are split over the issue, but the Defense Ministry
supports the U.S. stance.
"There has been understanding between South Korea and the U.S. over the use of
the SMA funds for the LPP since the beginning of the LPP talks in 2000," the
ministry said in its latest report to the National Assembly. "We share the view
that it would be more rational and efficient to use the SMA for the (construction
of) a new base, not for old ones."
But the foreign ministry, which is in charge of the SMA negotiations, remains
cautious, apparently mindful of criticisms from opposition parties and
progressive civic groups that say the U.S. should foot the bill for the base
relocation as agreed in 2004.
"Nothing has been decided yet, as negotiations are still under way," a senior
Foreign Ministry official said. "At this moment, it is hard to say whether we
agree with the Defense Ministry's position or not. We are pushing for a package
deal on related issues."
The official would not predict when the ongoing negotiations will end, saying
only that it "would be desirable to finish negotiations by the end of this year."
South Korea is also seeking to provide the U.S. military with funds and materials
on a case-by-case basis rather than paying a lump sum. The U.S. has reacted
coolly towards that plan.
About 28,500 U.S. soldiers are stationed on the Korean Peninsula as a legacy of
the 1950-53 Korean War.
lcd@yna.co.kr
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